Creating a Personal Budget

Which of the following is an example of a personal asset?

• Credit card balance

• Rent

• Cash

• Mortgage

An individual has total assets of $120,000 and total liabilities of $80,000. What is his net worth?

• $40,000

• $50,000

• $60,000

• $30,000

What does “A” represent in SMART goal setting practices?

• Analyzed

• Adaptable

• Achieved

• Attainable

Which of the following is the last step in creating a personal financial plan?

• Implementing the budget

• Balancing income and expenses

• Revising the plan

• Creating financial goals

Which of the following are goals which can be achieved in less than a year of time?

• Short-term goals

• Lifetime goals

• Intermediate-term goals

• Long-term goals

Based on the 50/30/20 rule for allocating resources, which of the following percentages should be devoted to savings?

• 50

• 0

• 20

• 30

Which of the following correctly defines the “M” in the goal setting acronym SMART?

• Malleable

• Manageable

• Maintainable

• Measurable

Which of the following is NOT a common budgeting strategy?

• Creating a savings plan

• Ensuring expenses are greater than income

• Separating needs from wants

• Establishing an emergency fund

Which of the following is an itemized summary of the expected income and expenses for a defined period of time?

• Net worth

• Budget

• Equity

• Balance sheet

Which of the following refers to personal belongings which have value?

• Net profit

• Net worth

• Liabilities

• Assets